Many insurance companies will ask you how many miles you drive and will factor them into your car insurance rate. The more miles you drive, the higher your fare could be. At Progressive, in most states, we ask you how many miles you drive to work. Usage-based insurance (UBI) helps align the cost of your auto policy with your driving habits.
While auto insurers have traditionally used factors such as age, location and motor vehicle report to determine the risk of having an accident, usage-based insurance helps calculate the car insurance rate by analyzing how often and how safely you drive. Many auto insurers offer optional UBI programs and can be beneficial to both parties: you can get a reduction in the rate and your insurer will use the data to better price your policy. No matter where you live, your standard car insurance policy will normally cover you in all 50 states and Canada. Your policy will not cover international travel outside Canada.
Whether you're on vacation out of state or taking a long road trip, you can drive with confidence knowing that you're insured up to the limits of your policy. If you spend a significant amount of time out of state, the situation can get complicated when it comes to determining the state in which your insurance policy should originate. You may also need an additional policy if you store cars in two different states. No, there is no separate auto insurance policy for several states, since a standard auto insurance policy generally offers out-of-state coverage in all 50 states.
Nor is there a multi-state auto insurance policy that originates in two or more states. Any auto policy you buy will originate in a single state, usually the state in which you reside. If your car travels with you between houses, you'll only need one policy. This is commonly called the snowbird exception because it generally affects snowbirds that spend the winter months in a state of warm weather.
For example, let's say you divide your time between Ohio and Arizona and keep your car in the state where you currently reside. You'll have an Arizona policy for the fall and winter months when you live in that state. When you return to Ohio during the spring and summer months, you can cancel your Arizona policy and start an Ohio policy. This is known as rewriting your policy for another state; if your car moves with you, it helps you avoid paying for separate insurance coverage out of state that isn't necessary.
Get to know our culture and our people Chat now to ask Flo anything or explore the most frequently asked questions. College students often get the best deal on car insurance and greater convenience when they stay on their parents' policy. Ultimately, however, it depends on each family and the place where the student attends school. For example, depending on the school's zip code, taking out a separate car insurance policy for the student may result in more affordable rates, but that could make it more difficult to share the car when the student is at home.
For college students from other states, some states and insurers may require a separate auto insurance policy. Both are covered when they drive each other's cars, so they don't have to tell the insurance company who's driving what car and when. Car insurance rules don't change if you're an 18-year-old living at home, a 19-year-old college student, or an adult living with your parents. Auto insurers may not offer a direct discount for driving fewer miles, but some may offer usage-based insurance programs that could lower your rate as a reward for driving safely and less in general.
In most cases, college students can stay on their parents' car insurance when they go to school if you haven't moved permanently. Cost savings are one of the reasons why most parents keep their college age students on their car insurance policy. The main reason why car insurance is mandatory in almost every state is because of your personal liability (liability) if you cause an accident. As a college student, you should stay on your parents' car insurance policy if you return home on weekends or during school holidays and drive your parents' cars.
If you plan to add or keep a college student in your policy, you must notify your car insurance company before your child moves in. If you share a permanent address or if your car usually spends the night at your parents' house, you can continue to share a car insurance policy regardless of your age. If you're studying in another country, you'll need your own car insurance policy that's valid wherever you're going to drive. In fact, Progressive requires that college students who are away from home but who occasionally drive their parents' car be on their parents' policy.
Some insurers also offer remote student discounts for college students who go to school and don't take a car. Depending on the state, you'll get a discount for any full-time college student on your Progressive car insurance policy if they're 22 years old or younger and enrolled in an educational institution that's more than 100 miles from home. However, drivers who choose not to purchase auto insurance must show that they have sufficient funds to meet the state's financial responsibility requirements (PDF) in the event that they cause an accident. .